Observer AB (publ) Interim report January-March 2005

Continued positive development in the US but weak quarter in Europe - Integration of media analysis company Delahaye progressing as planned and demand for analysis services increasing in all markets

• From January 1, 2005 Observer’s accounting principles follow the International Financial Reporting Standards, IFRS. All comparative periods are translated in accordance with IFRS. • The Group’s operating revenue amounted to SEK 423.5 million (410.5). Exchange rate effects from the translation to Swedish kronor affected revenue negatively by SEK 9.4 million compared with the corresponding period of the previous year. Organic growth in local currency was 0 percent (0). • Operating profit, EBIT, amounted to SEK 50.8 million (59.7). Exchange rate effects impacted profit negatively by SEK 2.3 million compared with the year-on-year period. The operating margin was 12.0 percent (14.5). • Earnings per share amounted to SEK 0.44 (0.53). Profit after financial items amounted to SEK 38.8 million (48.6) and net profit was SEK 30.8 million (36.9). • Operating cash flow amounted to SEK 8.4 million (47.2). Comment by Observer CEO Robert Lundberg “Market conditions in the Nordic region are gradually improving although competition is tough. Our recently launched integrated services are being well-received and order bookings are improving. In Germany, we are winning over new clients but during the first quarter this did not offset the effect of cost cuts by major clients, mainly in the automotive industry. Our integrated services are also being well-received in the UK and we expect increased order bookings to gradually compensate for the effects of weak news flows during the first quarter. We currently have a strong position in the US, and the integration of the media analysis company Delahaye will further improve our offering in America and internationally. Demand for analysis services is increasing in all markets. We are continuing to develop our processes and to trim production and administrative costs in the Nordic region and the Rest of Europe. Even with good growth in the US, we will maintain the cost controls that have contributed to good margins there. To achieve significant margin improvements, however, we have to get the most out of our intensive service development and thereby increase revenues.” For further information, please contact: Anders Lundmark, Chief Financial Officer, telephone: +46 70 333 29 77, +46 8 507 417 23, e- mail: anders.lundmark@observergroup.com Jan-Erik Jansson, Senior Vice President Mergers and Acquisitions, telephone: +46 70 511 91 53, +46 8 507 410 14, e- mail: anders.lundmark@observergroup.com Per Blixt, Senior VP Corporate Communications, telephone: +46 70 549 28 08, +46 8 507 410 12, e- mail: per.blixt@observergroup.com Robert Lundberg, President and CEO, telephone: +46 8 507 410 10, e-mail: robert.lundberg@observergroup.com Further comments on the report will be provided at a telephone conference with Observer AB’s management at 2:30 pm (CEST) on April 28. To participate, please phone +44 (0)207 162 0188. Use code: Observer.